Understanding the Impact of Trails on Residential Property Values in the Presence of Spatial Dependence

Posted: 21 Sep 2013

See all articles by Olivier Parent

Olivier Parent

University of Cincinnati - Department of Economics

Rainer von Hofe

Independent

Date Written: June 26, 2013

Abstract

This paper examines the impacts of a multi-purpose trail on residential property values in a hedonic model. Using a large housing data set in combination with street network distances,we show that proximity to trail entrances positively effects property values. Among other things, our study compares the hedonic model results from three different spatial specifications.We pay specific attention to the direct and indirect effects on residential property prices associated with potential changes in house characteristics. In addition, our study predicts property values around trail entrances using a "modified spatial predictive process" approach that is well suited for capturing spatial dependence in large data sets.

JEL Classification: C11, C21, R21

Suggested Citation

Parent, Olivier and von Hofe, Rainer, Understanding the Impact of Trails on Residential Property Values in the Presence of Spatial Dependence (June 26, 2013). Annals of Regional Science, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2285731

Olivier Parent (Contact Author)

University of Cincinnati - Department of Economics ( email )

Carl H. Lindner Hall 2925 Campus Green Drive
PO Box 0371
Cincinnati, OH 45221-0211
United States

Rainer Von Hofe

Independent ( email )

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